Introduction
The African Export-Import Bank (Afreximbank) is set to double its financing for intra-African trade from $20 billion in 2021 to $40 billion by 2026. This ambitious target was announced by Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President, Global Trade Bank, during the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF) held in Abuja.
A Focus on Sustainable Development
At the meeting, which attracted finance ministers and central bank governors from across Africa, Mr. ElMaayergi highlighted the significance of intra-African trade as a catalyst for sustainable development. Themed “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa,” the gathering aimed to identify the key challenges hindering Africa’s full integration and to explore strategic dialogues for sustainable solutions.
Afreximbank’s Role in Facilitating Intra-African Trade
Since its inception, Afreximbank has been a driving force in promoting intra-African trade. Mr. ElMaayergi emphasized the bank’s commitment by noting its $1 billion contribution to the AfCFTA Adjustment Fund and a $10 million grant to support the establishment and operationalization of the fund. Additionally, Afreximbank is collaborating with the AfCFTA Secretariat and the African Union Commission (AUC) to implement key initiatives such as the Pan-African Payments and Settlements System, the African Trade Gateway, and the Afreximbank African Collaborative Transit Guarantee Scheme.
Nigeria’s Integral Role in Afreximbank’s Success
Nigeria, a key founding member of Afreximbank and its second-largest shareholder, continues to play a crucial role in the bank’s growth. Mr. ElMaayergi noted that since 1993, Afreximbank has approved over $40 billion in support of Nigerian public and private sector entities. The bank is currently implementing several flagship initiatives in Nigeria, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre.
Enhancing the Effectiveness of African Multilateral Financial Institutions
Mr. ElMaayergi also highlighted the importance of continental multilateral financial institutions in addressing Africa’s financing gaps. To enhance their effectiveness, the Alliance of African Multilateral Financial Institutions (AAMFI) was launched in collaboration with the AUC during the 37th Ordinary Session of the Assembly of the Heads of State and Government of the AU in Addis Ababa. The AU recognizes these institutions as critical to strengthening the continental financial framework and advancing the AU’s Agenda 2063.
Call for Global Support and Collaboration
In his address, Mr. ElMaayergi urged the World Bank, the IMF, and other stakeholders to collaborate with AAMFI in addressing Africa’s challenges. He emphasized the importance of special privileges and immunities, including preferred creditor status, granted to these institutions as essential tools for addressing the continent’s development needs. He called on all stakeholders to respect the treaty obligations made to these institutions.
Intra-African Trade and Economic Growth
Recent studies show that intra-African trade positively impacts economic growth, particularly when Foreign Direct Investment (FDI) inflows increase in the host country. The complementarity between intra-African trade and FDI is becoming increasingly evident, as both contribute significantly to the economic growth of African nations.
Afreximbank's Vision for Africa's Economic Future
Afreximbank’s commitment to doubling its financing for intra-African trade reflects its dedication to driving economic growth and sustainable development across the continent. By supporting key initiatives and collaborating with other financial institutions, Afreximbank aims to create a more integrated and prosperous Africa.
